Tax Avoidance

Budget 2020 – The Usual Suspects

You would have thought that after, what, 10 years of specific anti-avoidance legislation HMRC would have cracked the tax avoidance nut. But no, the latest proposals in Budget 2020 would suggest that HMRC think otherwise. As the Budget ‘Red Book’...

‘Twas the afternoon before Christmas

If such a thing even exists, the Friday afternoon before the Christmas Break is rarely an exciting or memorable occasion in the tax world. Not like 31 January, say, or the morning before the Budget announcement, when minds are sharp...

Tax investigations; getting out of the rut

It is a truth universally acknowledged that HMRC Tax Investigations can often take far too long to be resolved. Not only can it often take many months if not years to establish all of the facts upon which to base...

THE LOAN CHARGE IS STILL COMING TO A PLACE NEAR YOU!

There has been a lot of media coverage concerning the communications between HMRC’s Second Permanent Secretary; Jim Harra and the Treasury Select Committee which was published on 1 March 2019. The communication relates on the Disguised Remuneration Settlement opportunity and...

The 2019 DR Loan Charge – Act now!

For participants in what HMRC calls Disguised Remuneration tax avoidance, we previously reported in August 2018 the details of what is the final settlement opportunity. The “carrot” was stated to be resolution and finality of long standing investigations with the...

Statutory Review into ‘unfair’ Loan Charge

The Loan Charge, as part of the 2017 Finance Act (No. 2), was introduced by the Treasury to recover unpaid taxes by individuals who have used ‘disguised remuneration’ schemes - a complex form of tax avoidance involving contractors, employees or...

An error of Judgement?

A recent First Tier Tribunal decision in Tasneem Arif v The Commissioners for H M Revenue and Customs [2019] UKFTT 7 (TC) which involved an appeal against an information notice raises the question of what a taxpayer might do if...

The benefits of an Independent Review by HMRC

The Taxes Acts allow taxpayers to ask for an independent review of an appealable decision by HMRC. The review is carried out by an independent officer within HMRC’s Appeals and Reviews teams. However, recent evidence suggests that many taxpayers remain...

Offshore Developments – More Ammunition for HMRC

There was a time when arranging your affairs to minimise your liabilities was considered tax planning. Invariably this involved steps which included offshore structures. Nowadays the very mention of the phrase has very negative connotations and has become the byword...

Yet another nail in the coffin for offshore arrangements?

The UK Government has introduced a raft of legislation to address tax evasion and latterly tax avoidance. This has included; The Requirement to Correct legislation which has introduced punitive offshore penalties and extended assessing time limits for Income Tax, Inheritance...

The Future without Future

Investors in Future Capital Partners (“FCP”) investments will most likely have seen or been advised by FCP itself that the company may shortly go into liquidation or administration. This has been reported in various newspapers, including the Financial Times. Participants...

More Bite From Tooth

Back in 2016, we wrote about the rather interesting case of Raymond Tooth V The Commissioners for HMRC (UKFTT723), in which HMRC had argued that Mr Tooth had acted in a deliberate manner by entering a correct figure in an...

Judicial review of partner payment notices (PPNs)

The High Court has dismissed Carlton and others’ claim (“Carlton”) for judicial review of PPNs issued in respect of Downing (and also Stellar and Invicta) BPRA (business premises renovation allowance) investment arrangements concerning two grounds of challenge.  The case is...

Government ups the ante on anti-avoidance

The Government has used the Autumn Budget to again send a clear message of its commitment to tackling tax avoidance and tax evasion especially in relation to offshore structures. The Government will soon be publishing the responses to a consultation document...

When the taxman came to Albert Square

Thursday’s 26 October 2017 episode of EastEnders showed that loveable rogue Billy Mitchell was the subject of a HMRC compliance visit. Many of the businesses on the show are portrayed as family owned and managed and Billy is a Partner...

Last and final EBT settlement opportunity

Following HM Revenue & Customs (HMRC) success against Rangers Football club (RFC 2012 Plc (in liquidation) (formerly The Rangers Football Club Plc) (Appellant) v Advocate General for Scotland (Respondent) (Scotland) [2017]UKSC 45) use of Employee Benefit Trusts (EBT), HMRC is...

Not all gold glitters

The General Anti-Abuse Rule (GAAR) Advisory Panel has released an opinion relating to purchase of gold bullion and Employee Benefit Trusts (EBT). In a unanimous Opinion, the panel has found that “the tax arrangements [which sought to get around paying...

Tax Avoidance – Closing every last loophole

It should be clear by now to every UK citizen - unless exceptionally those who might have been living as a hermit in a Hebridean cave - that HMRC and the Government do not like tax avoidance. Especially abusive tax avoidance. However,...

Tax avoidance – down for the count?

Has HM Revenue & Customs (HMRC) got tax avoiders down and out for the count? In another round of litigation, HMRC have soundly defeated two film partnerships (Samarkand Film Partnership No.3 and Proteus Film Partnership No.1) in the Court of...

The Final Nails in the Coffin of Tax Avoidance?

As further proof – if proof were needed – of the Government’s determination to wipe out tax avoidance altogether, in the Autumn Statement the Chancellor has announced yet more sanctions and deterrents. The proposed sanctions have already been largely set...

No no (NIC) Limits

The band, 2Unlimited’s single “No Limits” was number 1 in the UK in 1993 now 23 years later The Chancellor has made his own hit on the Limitation Act allowing collection of NIC beyond 6 years together with other tweaks:...

Mr Tooth Bites Back

The Taxes legislation has long reserved the heaviest penalties for the taxpayer with the most heinous behaviour – so that there is a heavier penalty for the taxpayer who deliberately evades his tax than there would be if he got...

Panama Papers – When will the Taxman come?

This has been such a year for astonishing events – what with Brexit, Prime Ministers and party leaders resigning left, right and centre, along with terrorist atrocities, attempted coups and disasters on a scale that previously might not be imagined...

Beneficial ownership information

The Chancellor and the Treasury have issued a joint Statement on the initiative for exchange of beneficial ownership information, updated on 3 May after the inclusion of Iceland. The activities targeted go beyond tax evasion to include money laundering and...

Tax Avoidance – Gold loses its Glitter

Tax practitioners with long memories may remember a time – long, long ago – when the promoters of tax avoidance came up with all kinds of wild schemes to circumvent the more annoying features of PAYE – namely the need...

Nothing New?

The International Consortium of Investigative Journalists (ICIJ) announcement that it has received more than 11.5 Million financial and legal records relating to Mossack Fonseca and its exposé of prominent politicians and their families has once again brought tax evasion and...

Does Panama = Bad? Maybe not…

The furore regarding the “Panama Papers” – the 11.5 million documents leaked from the Panamanian law firm of Mossack Fonseca – would seem to suggest that everyone involved in a Panamanian company must be a serious villain on a par...

Demolishing the Offshore Property Developer

In yet another exercise described as ‘levelling the playing field’ the government has announced plans to ensure that offshore developers cannot benefit from their offshore status to pay less tax on developing UK property than a UK developer would –...

And now Penalties for Tax Avoidance?

A throw-away line in the 2016 Budget suggests yet more blurring of the lines between evasion and avoidance with the suggestion of the introduction of penalties for avoidance. In all the moral grandstanding that surrounds tax avoidance, it is sometimes...

Withholding Tax on Royalty Payments

The Budget 2016 introduced new anti-avoidance rules to impose withholding tax on royalty payments where the payments are used to shift profits to a low or no-tax jurisdiction. As part of the push to prevent multi-nationals avoiding tax, proposals are...

Bankers’ bonus scheme bashed by Supreme Court

Two schemes designed to enable employees to realise significant cash sums without suffering income tax or PAYE have been ruled ineffective by the Supreme Court (SC), overturning the surprising judgment of the Court of Appeal in the companies’ favour. Redeemable...

Rangers EBT case – Not dead yet

The long-running saga that is the Tax Case involving Rangers FC’s use of an Employee Benefit Trust has been given yet another lease of life when, this week, the liquidator BDO who represents Rangers was granted permission to appeal the...

Final Call for the Settlement Opportunities

This is a final reminder that the Film Scheme Settlement Opportunity and the settlement opportunity for the various tax avoidance schemes involving 'Sideways loss relief' - whether for individuals, partnerships or corporate entities, close at noon on Thursday 11th February...

Extension of DOTAS Hallmarks goes ahead, with changes

Background The Disclosure of Tax Avoidance Regime (DOTAS) has undergone some notable transformations during its lifetime, starting from being an ‘early warning system’ of tax planning for HMRC to now being a central plank of the Government’s attempts to shut...

High Noon – Time to leave the Film Scheme

Participants in Tax Avoidance Film Schemes are reminded that they have until 12 noon on Thursday 11th February to register their interest to reach a settlement with HMRC. Those who fail to do so are likely to have to pay...

Is taxation a poisoned chalice?

"Is the taxation a poisoned chalice?" That is what many told to Commissionaire Pierre Moscovici when he found out that President Juncker had given him the taxation portfolio. In the last eighteen months, the European Commission’s and OECD’s strong commitment...

BEPS: Transfer Pricing Status Update

The Organisation for Economic Co-operation and Development (‘OECD’) held its final public consultation on Actions 8-10 (transfer pricing/'TP') of the Base Erosion and Profit Shifting (BEPS) project on 6 and 7 July 2015. The first day of meeting focused on...

HMRC given £millions to tackle Tax Evasion

With the Government signing up to the Tax Lock commitment to not increase mainstream taxes, it has to find extra money from somewhere to reduce the Country’s debt and borrowing requirements. Who is in HMRC’s sights this time? Online traders, wealthy...

EU Action Plan: Nice to meet you…..

The European Commission presented an Action Plan to fundamentally reform corporate taxation in the EU on 17 June 2015. The Action Plan sets out a series of initiatives to tackle tax avoidance, secure sustainable revenues and strengthen the Single Market...

MCAA – New Players in the Team

Strengthening the international community’s fight against offshore tax evasion: Australia, Canada, Chile, Costa Rica, India, Indonesia and New Zealand join multilateral agreement to automatically exchange information on 4 June 2015 Today marks another significant step in our collective pursuit to...

BEPS – Action 8: The Ball is in your Court

The OECD invited public comments on a Discussion Draft which deals with work in relation to Action 8 of the Action Plan on Base Erosion and Profit Shifting (BEPS) on 29 April. Action 8 covers the transfer pricing of intangibles...

OECD: 85 Signatures and still Counting

Tax Transparency through information exchange is one of the most important and key items on the agenda nowadays. On 24 February 2015, Seychelles became the 85th signatory of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. The signing of...

BEPS Action 7 – More Questions than Answers

On 21 January, the OECD held a public discussion meeting on BEPS Action 7 focusing on preventing the artificial avoidance of permanent establishment (PE). Action 7 is one of the most discussed action points of the BEPS Action Plan and...

Luxembourg: New Year, New Rules….

Summary Article 29a of the General Tax Code on the Advance Tax Rulings and Advance Ruling Committee entered into force on 1 January 2015 in Luxembourg; Luxembourg endorsed the EU Commission’s plan to present a draft directive on mandatory automatic...

Keep Calm and Comment on BEPS

I am wondering whether it is only me who is facing hundreds of pages of discussion documents inviting stakeholders’ input or are you also sharing the same experience while you are drinking your strong cup of coffee today! It is...

Tackling the tax avoiders

The Autumn Statement shows a continued determination to make tax avoidance less and less attractive with a new dedicated taskforce to tackle the problem. This will apply to all those – whether individuals, partnerships or companies – that may have...

Autumn statement 2014: more than an awards ceremony?

George Osborne delivers the Coalition’s final Autumn Statement in the House of Commons on 3 December.  We reckon he’ll use this opportunity to remind us of the economic achievements of the Coalition, but will there be carrots promising reductions in...

HMRC commence the Accelerated Payment process

HM Revenue & Customs (HMRC) have started the process of issuing Accelerated Payment Notices (APN) to users of DOTAS schemes following legislation introduced in the Finance Act 2014 on 17 July 2014.  HMRC have previously published a lengthy list of...

Looking Back, BEPS: What happened in the last 14 months?

This September is a very challenging and landmark period for the international tax world. The OECD releases its first recommendations for a co-ordinated international approach to combat tax avoidance by multinational enterprises under the OECD/G20 Base Erosion and Profit Shifting (BEPS)...

BEPS Action Plan – The Ambitious Programme

This September will be a very exciting period for the international tax world and it is expected that the BEPS project marks its first turning point in the history of international co-operation on taxation. Pascal Saint-Amans, Director of OECD Centre...

Tax Transparency: Our upcoming debate

How can public understanding and tax transparency shape policy and the role of a trusted advisor? The discussion papers that will be used to explore these issues at an exclusive debate in Westminster next Tuesday, 8th of July are now...

HMRC – the modern day Robin Hood?

HMRC Direct Recovery of Debt HMRC’s Direct Recovery of Debts (DRD) consultation document was published this week, seeking views on the implementation of the controversial new debt enforcement powers that were announced in the 2014 Budget. The proposed DRD regime...

Accelerated Payments for Avoidance Schemes

The Budget confirmed HMRC plans to introduce an accelerated payments regime to remove the timing benefit for users of avoidance schemes in contentious litigation. The new obligation imposes what has been termed an “accelerated” obligation to pay the tax due....

Corporation tax avoidance involving capital losses

Targeted anti-avoidance rules had previously been introduced to prevent the contrived use of capital losses to reduce income profits.  The rules are to be amended to tighten up these provisions. Legislation will be included in Finance Bill 2014 to amend...

High profile ‘Working Wheels’ tax scheme fails

Last weekend’s press had headline stories of the First Tier Tribunal (FTT) decision in Flanagan & Others v HMRC that the “working wheels” tax scheme was not effective.  The press particularly highlighted the involvement of Chris Moyles, the former Radio...

The Fair Tax Mark

Last week saw the launch of the Fair Tax Mark (FTM) in the UK by Richard Murphy of the Tax Justice Network. Andrew Goodall in his blog today provides a useful insight into some of the concerns that the FTM...

OECD seek to tackle global tax evasion

On 13th February 2014, the OECD presented their latest weapon in the attack of global tax avoidance. The new standard builds on specific country agreements and 2010 US FATCA provisions to drive greater transparency and disclosure. In essence the standard...

HMRC DOTAS guidance updated

HMRC has updated its guidance on Disclosure of Tax Avoidance Schemes (DOTAS).  The new guidance has effect from 4 November 2013.  The changes to this guidance cover: The requirement for the user to give the promoter their national insurance number...

HMRC plans summer raid on pockets of tax scheme users

A consultation document (condoc) published on 24 January 2014 (following announcements in the 2013 Autumn Statement) intends to change the economic incentives to avoid tax and promote tax avoidance. It will give HMRC the power to pursue upfront payments of...

UK Tax Authority Under Attack

In the UK, The Independent newspaper is today running the headline “Take from the poor, but not the rich”, following the publication of the UK Public Accounts Committee (PAC) report on HMRC tax collection. The main challenges to HMRC were...

Tax Avoidance – a Global Issue

In the two weeks since the launch of Mazars response to the Tax Transparency debate we have received considerable interest from business, media and from non-government organisations (NGOs). It is clear from our discussions with businesses ranging from global, brand...